UPDATE: Sterne Agee Reiterates Apple at Buy with $840 PT Following Settlement

Sterne Agee reiterated its view on Apple

with a Buy rating and an $840 price target as the company settled a suit with HTC sooner than it had been expected. Sterne Agee commented, "AAPL and HTC announced this past weekend that they have settled their litigation and will engage in a 10-year cross licensing arrangement. Financial terms were not disclosed but we believe AAPL is likely getting a net licensing fee due to its much stronger patent portfolio and we think position as undisputed inventor of the modern smart phone with touchscreen. We view this as a positive and the big question is whether Samsung and Motorola will also reach settlement agreements[.]" Apple closed at $547.05 on Friday.